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Balancing the Budget Portfolio
By: Linda Baumgartner, Lisa Van Faassen, Stef Bandstra and Evelina Kucherenko
Class: ICV1A
Teacher: Pieter Swieringa
Date of Submission: 17 June 2013, 16:00
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ContentsExecutive Summary..........................................................................................................................................3
Personal Data of the Venture Members...........................................................................................................4
Company Description.......................................................................................................................................8
Internal Analysis...............................................................................................................................................9
External Analysis.............................................................................................................................................10
The Swot Analysis...........................................................................................................................................11
Financial Statements......................................................................................................................................12
The Event........................................................................................................................................................16
Reference List..................................................................................................................................................20
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Executive Summary
Across the Netherlands, the emerging environmentally friendly trend is seen as an explosion of growth
recently. People are becoming more and more interested in being ‘green’. Our market research has shown
that 9 out 10 Holland citizens have bikes and mobile phones, and all of them have difficulties with charging
them while travelling or being on road. Our company decided to come up with the smart solution to this
problem the GO Charge! The Go charge is a lightweight, as well as highly efficient, bicycle generator that
has a re-chargeable battery pack attached to it designed to power any of your electronic or mobile devices
via USB. Our generators can be attached on most of the standard bicycle frames found in the Netherlands
and the battery packs detach easily to quickly extend your battery life. Our clients are modern commuter
cyclist, the urban biker, the weekend rider, the gadget lover, the green fanatic, and anyone that’s ever
needed a charge on the go. By backing the Go charge, you’re also funding technology that is need around
the world. The marketing strategy of the GoCharge is to emphasize the contribution to the world that
people will make by using our product. The product will be available online as well as other retail stores
such as sports stores. We plan to build our client base through newspaper promotion as well as through
brochure and poster advertising, hoping that our services will appeal to all bike users throughout the
Holland.
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Personal Data of the Venture MembersCurriculum Vitae, Lisa Van Faassen
Personality
Name: Lisa van FaassenAdress: Noorderkerkstraat 5-1
9712RB GroningenPhone: 0653991905E-mail: [email protected] of birth: July 16, 1995Birth place: EmmeloordGender: femaleNationality: DutchMarital Status: UnmarriedDriving licence: none
Education
sep 2012 - heden HBO, International Communication (bezig)Hanze Hogeschool, Groningen
sep 2007 - jun 2012 HAVO, HAVO (behaald)Emelwerda College, Emmeloord
Work experience
okt 2012 - apr 2013 Ahold, GroningenFunction: CashierProceedings: Cashier activities
nov 2010 - sep 2012 HEMA, EmmeloordFunction: Sales assistantProceedings: Advise and help customers. Also cashier activities.
Other
Talent: Dutch, fluentEnglish, fluentGerman, rational
Computer literacy: Microsoft Word, very good. Microsoft Excel, rationalAdobe Photoshop, rational. InDesign, rational
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Curriculum Vitae, Linda Baumgartner
Personality
Name: Linda BaumgartnerAdress: Werfstraat 10c
9712VNPhone: 0643287375E-mail:
[email protected] Date of birth: 28, February, 1993Birth place: HelsinkiGender: FemaleNationality: FinlandMarital Status: UnmarriedDriving licence: none
Education
sep 2012 - present HBO, International Communication Hanze Hogeschool, Groningen
sep 2006 - jun 2012 Kulosaari International School, Helsinki
Work experience
February 2011 – September 2011
Café SvartholmFunction: WaitressProceedings: Cashier activities, Waitressing, Bartendering
February 2012 - present Siivousfirm Mirja PekkolaFunction: CleanerProceedings: Help older people with cleaning their houses.
Other
Talent: English, fluentGerman, fluentSwedish, rationalFinnish, fluent
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Computer literacy: Microsoft Word, excellent. Microsoft Excel, rationalAdobe Photoshop, excellent. InDesign, excellentAdobe Illustrator, excellent
Curriculum Vitae, Stef Bandstra
Personality
Name: Gerke Stefan BandstraAdress: Workumstraat 48
9718HLPhone: 0643287375E-mail: [email protected] of birth: 16 September, 1994Birth place: EmmeloordGender: MaleNationality: DutchMarital Status: UnmarriedDriving licence: none
Education
sep 2012 - present HBO, International Communication Hanze Hogeschool, Groningen
sep 2006 - jun 2012 HAVO, HAVO (achieved)Emelwerda College, Emmeloord
Work experience
February 2011 – September 2011
Zeilmakerij LampeFunction: Cashier and technical assistantProceedings: Cashier activities
February 2012 - present Poiesz Supermarkets NetherlandsFunction: Sales assistantProceedings: Advice and help customers in their decisions. Also cashier activities.
Other
Talent: Dutch, fluentEnglish, fluent
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German, rational
Computer literacy: Microsoft Word, excellent. Microsoft Excel, rational.
Curriculum Vitae, Evelina Kucherenko
Personality
Name: Evelina KucherenkoAdress: Amethistsstraat 73
9712VN, Groningen
Phone: +31630141073E-mail:
[email protected] Date of birth: 1, October, 1995Birth place: KhmelnitskyGender: FemaleNationality: UkraineMarital Status: UnmarriedDriving licence: none
Education
sep 2012 - present HBO, International Communication Hanze Hogeschool, Groningen
sep 2005 - jun 2012Khmelnitsky Gymnasium № 1, Ukraine, Khmelnitsky Certificate of general secondary education
Work experience
February 2011 – September 2011
Khmelnitsky, Ukraine Function: CashierProceedings: Help and advice customers, cashier activities
Other
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Talent: English, fluentGerman, rationalUkrainian, fluentRussian, fluent
Computer literacy: Microsoft Word, excellentMicrosoft Excel, rationalAdobe Photoshop, excellentInDesign, excellentAdobe Illustrator, excellent
Hobby's and interests: Travelling, Swimming, Reading
Company Description
Vision
Our vision is to protect and respect the environment by providing environmentally friendly products available for people all over the world.
Mission
Our mission is to deliver the highest quality products to our clients and play an environmentally friendly role in delivering these products.
Motivation of business choice
We wanted to create a product that currently does not exist, and something that will help people in everyday use. We are becoming more dependent on technology, and it is becoming more and more important to us. We rely on apps on our phones such as Instagram and Strava, which takes up a lot of the battery on our phones these days. Our product will allow to give people a piece of mind that will allow you to charge your phone whenever and wherever you need it. Our biggest motivation towards making this product was to create renewable energy that is clean and something that is environmentally friendly. We believe that this is a type of energy is needed around the world. Not only will this help people in the developed world but also possibly people living in the developing world, to help those that are not in reach for electricity.
Location justification
Our business is currently located in a city called Groningen in the Netherlands. People in the Netherlands have an active lifestyle where the average person uses their bicycle every day. This has a positive effect on the image and total use of our product. In addition, the Dutch culture is creating more awareness of their environment and is more involved in becoming more environmentally friendly.
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Internal AnalysisGoCharge’s objective is to provide their customers a brand new and easy way of charging their technology, by delivering the highest quality products to our clients as well as playing an environmentally friendly role in delivering these products. GoCharge is a customer-oriented organization that tries to achieve the objectives through their core competencies that includes its resources as well its capabilities that allows the business to stand out and be different when comparing to its competitors.
The GoCharge product itself brings a very unique brand identity because of the environmentally friendly part of the product. The GoCharge is unique in the way that it is a wireless charger connected to your bicycle that can charge your phone, laptop, or camera with a removable battery pack. As you ride your bicycle, the peddling harnesses the kinetic energy you generate, either directly charging your device on the steer or storing the energy in the detachable battery pack, giving you on-demand power whenever and wherever you need it. Buying this product therefore funds energy that is eco-friendly and this is needed to protecting our world.
Some of the intangible resources include the knowledge and expertise of the firm. The GoCharge products are being produced in factories within China, Beijing. These people creating the products are experts in creating dynamos, which will contribute strength towards the company because of their skills. The product itself is being produced in China, however, the products are being sold in the Netherlands, with our target group being people living in Holland between the age of 16 to 60 years old who have an interest in sports activities. The employees working within the organization in the Netherlands are highly educated in certain fields. This will contribute to an additional strength of the organization, because we have a mixture of skills that will help us achieve our goal. The employees will be working in a building located in Amsterdam. In addition to this, the organization follows a hierarchical structure and the importance of the corporate culture within the organization is very important within the firm. It is important that everyone working within the firm knows the values and the mission of the company, as well as respects each other. It is also important that everyone within the firm is committed to working to ensure the success of the organization.
With the preceding facts, we can conclude that the company offers several positive internal aspects with strengths. However, the organization also faces some weaknesses. Because of the high quality of the product, the price of the product itself is also relatively high. Because of the high price of the product, it may narrow down the number of our customers and we may not be able to reach everyone we would like to. In addition, even though we offer a guarantee for the product, another weakness is that it may break if you do not handle it with care. Furthermore, there is always a possibility of it getting stolen from another individual when attached to your bicycle.
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External Analysis
In addition to the internal environment, the external environment also provides several threats as well as opportunities towards the company.
The production of the product will take place in China as the costs are relatively low there. Therefore, the company’s supplier will be located in a company within Beijing. However, the product willed be launched in the Netherlands, as biking is one of the most popular commonly use of transport among citizens within the Netherlands, so for the company this would be convenient and profitable. Therefore, our customers will be the citizens throughout the Netherlands and the product will be oriented on the ‘sport-lovers’ who travel a lot by bike. Firstly, we decided to promote the charger in larger cities such as Amsterdam, Den Haag, and Rotterdam by using different media activities such as advertising it in local gyms, sport shops, newspapers and magazines, as well as promoting it in High Schools as well as Universities. Consequently, if the product becomes popular we will expand our production in smaller cities.
Some of the various opportunities that the macro-environment of GoCharge provides are for example the current change in the increase of the trend of the society wanting to become more environmentally friendly. Due to the current development of going green, many customers are willing to pay more in order to get high quality and environmentally friendly products and this is exactly what Go-charge focuses on. Even though this business offers its product for a relatively high price, the target group may still be willing to make this investment to add additional value to their daily life.
Even though the product is distinctive and has its own characteristics, we have one competitor that is also focused on wireless charging, which may cause threats towards our company. This product is namely the ‘Power Mat’. The competitor, however, is diverse in the way that the product generates energy in a different way. GoCharge harnesses the kinetic energy you generate, either directly charging your device on the steer or storing the energy in the detachable battery pack, giving you on-demand power whenever and wherever you need it. The Power Mat does not work in a similar way.
An additional threat could be the economic environment around the company. For example, in case of a market boom, recession, or a growing inflation, it can all affect the way our company operates. This may also affect our target groups, in the way that people will lose consumer confidence and will not be confident about their stability of their income and therefore this will also affect their spending activity. This in turn, will affect our income because of the loss of potentially customers. In addition, unemployment levels, and decrease in income levels may also affect our target group’s spending activity.
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The Swot Analysis
The event
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SWOT Analysis Template
We are assessing the strengths, weaknesses, opportunities, as well as threats within the EcoMove organization
Strengths
- Unique brand identity- Corporate Culture- Knowledge and expertise
of the firm
Weaknesses
- High price of products, loss of potential customers
- Possibility of the product breaking
- Possibility of product getting stolen
Opportunities
- Rise of environmentally friendly trend
Threats
- Economic surrounding(Recession, Market Boom)
- Power Mat competitor- Loss in consumer
confidence(Decrease in income levels, unemployment etc.)
Financial Statements
Task 6: Financial Statement
A. Start up costs
Initial Investment Costs:
Initial Investment Costs (sunk costs)
Patent €5000
Webshop €500
Machines €1000
Total €6500
Monthly Operating Costs
Rent €1000
Promotion €8600
Webshop €10
Wages per month €10000
Total €20068
Variable costs per unit
Production costs 9
Total 9 per unit
Notes
Promotion costs: €5,400 promotional give-away. €52,764 magazine promotions. €15,036 Euros on
brochures and posters for school. Total promotion costs: €73200. Web shop costs:
- Software: €250 for updates and €250 for IDEAL payment integration- Domain name of the website http://www.gocharge.com €7 per year- Hosting costs: €10 per month- Total web shop costs: €500 start-up costs and €17 fixed costs per year
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B. Cash flows
Notes
1. In 2014, 2015, 2016 wages are increased by €1000 each year.
2. Sales are estimated to rise at an average rate of 20% each month, fluctuation is not included. After a
year of rising sales, we expect our sales rate will increase with 10% each year.
3. €10000 Wages a month (2500x4 employees),
4. The GoCharge production costs are 9 per unit production cost (transport and material costs in
Asia included). Adding up wages plus the expenses made up for each month according to our sales
for production costs.
5. The Retail price of the GoCharge is €24,95, we are estimated to sell 500 products in the first start-up
month.
June-December 2012 (In Euro’s)
Jun Jul Aug Sep Oct Nov DecRevenues 12475 14970 17964 21557 25869 31041 37251Expenses 14500 15400 16480 17776 19333 21196 23437FCF -€2025 -€430 €1484 €3781 €6536 €9845 €13814Total Revenue €161127
Total Expenses €128122
Income €33005
June 2012 - December 2016
2012 2013 2014 2015 2016Revenues €161127 €177240 €194964 €214460 €235906Expenses €128122 €140935 €155028 €170531 €187583FCF €33005 €36305 €39936 €43930 €48323
C. Net Present Value: ?
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D. Balance Sheet
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F Break-Even AnalysisFor the first month:
24.95N - 9N - 20068 = 015.95N = 20068N=1259
Task 7: Market your Product 4 P’s apply the knowledge from the Marketing class.
Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want. There are different kinds of products such as specialty products, unsought products, convenience products and shopping products. The product we designed is in the category specialty products, with unique characteristics for which a significant group of buyers is willing to make a special purchase effort. GoCharge is designed to be a lightweight generator to charge your phone, laptop, and camera which includes a removable battery pack attached to your bicycle. The case that comes with it is water-resistant that can be clipped onto your steer in order to attach your phone. As an individual rides their bicycle with the GoCharge attached, the peddling of the individual on the bicycle harnesses the kinetic energy you generate, either directly charging your device on the steer or storing the energy in the detachable battery pack giving you on-demand power whenever and wherever you need it. Last but not least, by buying this product you are also eco-friendly and funding energy that is needed to protecting our world.
Price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. The sales retail costs of a GoCharge is 24,95 Euros per unit. This includes the whole package deal, including the generator, the removable battery with a USB plug, a cord carrying power from the generator to your device, as well as a water-resistant case carrying your phone. The production costs per unit will cost 9 Euros per unit, making a profit of 15.95 Euros per unit.
Place refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. The production of the GoCharge product itself will take place in China, Beijing, however the product will then be transported to the Netherlands, Amsterdam, and will be sold in Holland. The product can be found on the website www.GoCharge.com. In addition, the product can be found in other retail stores such as fitness centers and sport shops. These places will be convenient for our target groups to access due to their interests.
Promotion can be taken through several promotional tools, such as advertising, sales promotion, personal selling, public relations, as well as direct marketing. The idea for the GoCharge product is to firstly start off with a give-away sales promotion with short-term incentives to encourage the purchase or sale of the product. For this promotional event a total of 100 products will be sent to several regional gyms all over the Netherlands. Because of this, people can have their first hands-on experience with the product before purchasing the product itself. We believe that an experience like this will help us build awareness of our product as well as the brand itself. We want to cooperate with fitness centers, and BasicGym will be our main client for this promotional idea. BasicGym is a recent popular and upcoming fitness centre with
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locations throughout the Netherlands. We will be handing out in total of 600 products which would cost us up to 5,400 Euros. On top of this, we have decided to use magazine promotion in a Dutch bicycle magazine known as “Fiets”. This is known to be one of the largest and well known bicycle magazines in the Netherlands, in which they print in total 45,000 magazines per month, which tells us much about the popularity of the magazine (Fiets, 2012). We would like to promote our product on a 1/1 page of the magazine which would cost us 3,445 Euros per month. In total this would cost us up to 41,340 Euros for an entire year. In addition, we would like to promote the product in the “ProCycling” magazine, another famous Dutch magazine, in a 1/1 page of the magazine which would cost us 1,904 per month. For 6 total months this would cost us in total of 11,424 Euros. 15,036 Euros will be spent on brochures and posters for the largest High schools and Universities around the Netherlands. Together our promotion activities will cost us 53,200 Euros for an entire year,
Task 8: The EventTo promote our GoCharge, we want to create an event which fits the target group. The target group of the GoCharge product is ’sport-lovers’ who use bicycling often for transportation from the age of 16 to the age of 60. We want to construct a 30km cycling marathon for active people involved in sports, or motivated people who feel connected to our company. Every racing bike available will have a GoCharge on it, and everyone completing the marathon will receive this GoCharge product for free for attributing to the race.
To do this following event, we will need to spend the following costs:
Costs in €
Event Site/Facility
Rental Fee 400
Permit(s)/License 0
Labor 1500
Subtotal €1900
Rentals
Heat/Air0
Furniture 200
Tables200
Registration Tables 150
Chairs 150
Pipe & Drape 0
Carpeting/Flooring 0
Entertainment
Music 150
Talent 0
Celebrity
Speaker’s Fees 150
Models0
Labor 0
Other0
Subtotal € 300
Utilities/Waste Management 0
Water Hookup 150
Restrooms/Portopotties 200
Trash/Dumpsters/ 150
On-Site Transportation
Truck/Van Rental 250
Carts/Hand Trucks0
Special Vehicles (bicycles, people can bring their
own as well) 2000
Other 0
Labor 0
Subtotal € 2250
Travel/Accommodations
VIP Travel 0
Limousine/Car Rental 0
Hotel 0
Staff Travel 430
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Props0
Tents/Canopies 0
Staging (skirting, stairs) 0
Risers 0
Stanchions/Ropes 0
Labor 0
Subtotal €850
Food Services
Food 0
Beverages 1500
Bartender fees 0
Catering fees 0
Equipment 1500
Tables/Chairs 500
Supplies-Linens, China, 0
Glasses, Utensils 0
Labor/Staff 750
Gratuities 0
Tax 0
Health Permits 0
Personnel/VIP/Guests/ 0
Volunteers 0
Misc. Charges 0
Subtotal € 4050
Audio-Visual
Television Monitors 0
Video Players/Recorders 0
Receptacles 0
Disposal Service 350
Setup Crew 1000
Cleanup Crew 750
Supplies 500
Misc. 0
Subtotal €3100
Promotion/Advertising
Newspapers 3000
Magazines 1500
Radio 0
TV 0
Show Signs 2000
Street Signs 1000
Directional Signs 300
Banners 400
Printed Photos 0
Promotional Items 0
Radio/TV/Video Production
Subtotal € 16200
Security
Facility 1500
Private 0
Subtotal €1500
Insurance
Gen. Liability Insurance 3000
Limousine/Car Rental 0
Hotel 0
Subtotal € 430
Personnel
Event Manager 3000
Show/Event Staff 2500
Additional Staff 1000
Overtime 0
Host/Hostesses1750
Registration 500
Consultants 0
Public Relations 0
Other 0
Subtotal € 1850
Emergency Considerations
Medical 3000
Ambulance 1000
Rain Plan Cost 0
Canopies/Tents/Coverings 1000
Subtotal €3500
Misc. Costs
Accounting 1000
Legal Counsel 0
Office Supplies 0
Office Equipment 0
Phone 1000
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Cameras 2000
Overhead Projectors 0
Projectors/Carts 0
Slide & Film 0
Screens 0
Lecterns/Podiums 0
Microphones 750
Reel-to-reel Tape Recorders 0
Disc Players 0
Sound System 1500
Walkie-Talkies 350
Pointers/Marking Pens 50
Flip Charts 0
Blackboards 0
Computer Interfaces 0
Technical Staff 750
Labor 500
Subtotal €12600
Electrical
General Lighting 500
Special Lighting 0
Generator 2000
Extension Cords 2000
Video Production 0
Other Rentals 0
Labor 0
Subtotal €4500
Rider 2500
Specialized 0
Subtotal €5500
Design & Printing
Designer 2000
Business Cards 0
Brochures 1000
Media Kit 0
Registration Packets 0
Posters 1500
Flyers 1500
Invitations 0
Tickets 5000
Letterhead/Envelopes 0
Specialty Items 0
Duplicating/Photocopies 0
Logo 1500
Program 1500
Subtotal €14000
Misc. Printing/Specialities
Menus 0
Maps 500
Sponsor Signs 0
Special Area 0
VIP Area 0
Name Tags/Holders 500
Place Cards 0
Ticket Sales Fees 0
Warehouse 0
Mileage 0
Parking 0
Extra Supplies 0
Event Photographer 1000
Event Videographer 1000
Coat Check 0
Volunteer 0
(Appreciation Activity/Gifts) 250
Complimentary Tickets 0
Local, state, federal taxes 0
Misc. Gratuities 0
Specialized Labor 500
Other 0
Subtotal €5250
Postage/Shipping/Storage
Postage 0
Bulk Mail/Permits 0
Mail House 0
Freight 0
Delivery Service 0
Drayage 0
Subtotal €0
Total Expenses €85580
Income
Event Income €15000
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Decorations
Event Decor 2500
Stage Decor ________
Stage Backdrop ________
Centerpieces/Table Decor 100
Flowers/Plants 250
Candles 0
Balloons 200
Speciality Linen 0
Chair Covers 0
Signs 1500
Props 0
Paper Supplies _0
Misc. Charges 0
Labor 1000
Subtotal €5550
Awards,Recognitions 250
Engraving 0
Certificates 0
Prizes 250
Frames 0
Thank You Cards 0
Other 0
Subtotal €1250
Transportation/Parking
Limousine/Car Rental 0
Valet Area 0
Shuttle 0
Mileage Reimbursement 0
Labor/Personnel 0
Subtotal €0
Booth Space Sales €2500
Ticket Sales/Admission €0
Sponsors/Underwriters €3000
Donations €25000
Merchandise €500
Raffle €0
Auction €0
Bar €1500
Ad Program €1500
Other €0
Total Income €49500
Event Profit or Loss €36380
Reference List
Fiets (2012) Adverteerders Gids 2012. Retreived June 16, from http://www.fiets.nl/wp-content/uploads/2012/01/FTS111_SALESBROCHUREv2.pdf
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